/biz/ - Business & Finance

Is it true /biz/? Is saving worse for the economy than investing?

>he thinks that lowering the interest rate necessarily lowers the value of money
>he doesn't understand that if this is offset by an increase in the aggregate supply of money (income) in terms of wage units, then the effect on interest is nil? Don't you understand that lowering interest on certain loans spurring investment would have a positive effect on employment thereby resulting in what has been said.
Can u even Keynes?

Does any economist even come close??

>agrees with Irving Fisher's theory of finance
>correctly criticized the entire school of Austrian economics for not correctly defining what a production cycle is
>BTFO the classical view of perfect equilibrium economics single-handedly

Give it up.

I was talking with someone today about Keynes' investment multiplier.

Does the investment multiplier imply that if investment were to occur in an industry in a poor area, then the function of additional employment increase total will equal the investment in said industry times the investment multiplier?

In a basic sense, is he saying that the sector that money is being invested in by agencies or the government doesn't have to be oversaturated or undersaturated? Is he saying that the additional job increase would remain the same no matter what sector you would be investing in, government, corporate, or otherwise? Because it seems unlikely and a rather archaic, industrial concept. Perhaps not up to date with the somewhat detrimental divisions going on in society today.

Also, the investment multiplier, does this concept necessarily imply investment from the government or other agencies as opposed to traditional government benefits to alleviate the high consumption:income ratios of poorer areas?